Crypto Fear And Greed Index Plunges To 18-Month Low After BTC Tumbles Below $60K On Mt. Gox Worries, Bitcoin ETF Outflows

The Crypto Worry and Greed Index plummeted to its lowest level in almost 18 months on June 25 after Bitcoin (BTC) noticed its worth drop beneath the psychological $60,000 stage for the primary time since early Could.

The index, which measures market sentiment for BTC and the remainder of the crypto market, fell 24 factors on June 24. This marked its steepest day-to-day drop up to now couple of years and resulted within the index dropping into the “Worry” zone with a rating of 30.

It’s since bounced again a tad and at the moment stands at 46. A price of 0 exhibits “Excessive Worry,” whereas a price of 100 represents “Excessive Greed”

Crypto Worry And Greed Index Drop Coincides With BTC’s Steep Correction

BTC fell to a seven-week low at round $58,400 on June 24. Nonetheless, it has since recovered barely to commerce at $61,539.02 as of two:40 a.m. EST.

Regardless of this uptick, the main crypto has some floor to make up if it needs to erase its weekly losses. Bitcoin remains to be down greater than 6% over the previous 7 days, CoinMarketCap information exhibits. 

A number of elements have contributed to the wave of promoting strain that has entered BTC’s charts. Over the previous two weeks, spot Bitcoin ETFs (exchange-traded funds) have registered outflows exceeding $1 billion.

In the meantime, traders are bracing for the potential liquidation of $8.5 billion value of BTC from the defunct Mt. Gox trade. 

Greater than a decade after its collapse, the trade’s rehabilitation trustee introduced that repayments in BTC and BCH to Mt. Gox’s 127,000 collectors are scheduled to start in July.

BTC’s Latest Dip Half Of A Greater Bullish Play

Whereas traders concern how BTC will react to the approaching Mt. Gox selloff, some analysts consider BTC’s latest dip was a part of a longer-term bullish macro setup. 

“This Bitcoin retrace was all about forming a Macro Larger Low, ” Pseudonymous dealer and analyst Rekt Capital stated in a Jun. 25 X put up.

#BTC

This Bitcoin retrace was all about forming a Macro Larger Low

And we could have simply acquired one

If issues proceed like this…

Bitcoin could very nicely be growing a Macro Bull Flag at these worth ranges$BTC #Crypto #Bitcoin https://t.co/AAcXPVFMto pic.twitter.com/68cgyoFUex

— Rekt Capital (@rektcapital) June 25, 2024

“Bitcoin could very nicely be growing a Macro Bull Flag at these worth ranges,” he added.

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